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Former Coca-Cola engineer charged with stealing secrets for a Chinese firm

A former senior engineer at Coca-Cola was indicted Thursday in Tennessee for stealing trade secrets worth an estimated $120 million to give to a Chinese company, the Justice Department announced.

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US national You Xiaorong allegedly stole technology for valuable BPA-free packaging jointly owned by several companies, including a former “Atlanta-based” employer that was unnamed in the indictment.

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A spokeswoman for Coca-Cola, whose headquarters is in Atlanta, declined to comment on the case but confirmed that You previously worked for the company.

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“Because this is a pending legal matter, it would not be appropriate for us to comment further,” she said.

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According to the indictment, You conspired with Chinese national Liu Xiangchen and an unnamed relative of Liu to steal formulations for food packing coatings that are free of the widely-used bisphenol-A chemical, which scientists have discovered in recent years is harmful to human health.

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Alternatives to BPA are scarce and highly valuable in the food packing industry.

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Liu wanted the technology for his company, which was planning to develop production lines for BPA-free packing, according to the indictment.

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In exchange, he offered You a job and also promised to help her win one of China’s highest awards for research and innovation, the “Thousand Talents” award.

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The prestigious prize honors Chinese who return from study and work abroad bringing back with them technology that will advance China’s economy.

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US intelligence officials say the program also aims to encourage Chinese abroad to steal technology to bring to China.

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You “is accused of an egregious, premeditated theft and transfer of trade secrets worth more than $100 million for the purpose of setting up a Chinese company that would compete with the American companies from which the trade secrets were stolen,” said J. Douglas Overbey, US Attorney for the Eastern District of Tennessee.

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“Unfortunately, China continues to use its national programs, like the ‘Thousand Talents,’ to solicit and reward the theft of our nation’s trade secrets and intellectual property.”

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